Slide 1: Earnings Conference Call Fiscal Q4 and Full Year 2024
Earnings Conference Call Fiscal Q4 and Full Year 2024 November 26, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Safe Harbor Statement Regarding Forward-Looking Statements This presentation contains express or implied "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements
Slide 3: Agenda and Presenters
Agenda and Presenters Today’s topics: Dev Kurdikar Chief Executive Officer Strategic Priorities Roadmap Strategic Business Update Revenue and Earnings Review Jake Elguicze Chief Financial Officer Guidance Q&A Pravesh Khandelwal Vice President, Investor Relations 3
Slide 4: We set a 3-year strategic priorities roadmap as we became an independent company
We set a 3-year strategic priorities roadmap as we became an independent company Strengthen and optimize Separate and stand-up: Invest in growth: the core business: Maintain core injection Complete ERP Advance insulin patch pump business revenue implementation development Navigate through op
Slide 5: We accomplished what we set out to do
We accomplished what we set out to do Strengthen and optimize Separate and stand-up Invest in growth core business Overcame challenging operating Completed implementation of ERP, Received U.S. FDA clearance for our environment, inflationary pressures, and shared services, and distribution insu
Slide 6: Strategic reorganization designed to streamline operations, reduce costs and prioritize debt paydown
Strategic reorganization designed to streamline operations, reduce costs and prioritize debt paydown Discontinue the insulin patch pump program Restructuring expected to be substantially complete during the first half of fiscal year 2025 Expected pre-tax cash charges of between $25 million and $
Slide 7: Next phase of embecta's transformation back to growth
Next phase of embecta’s transformation back to growth Strengthen Expand Increase core business product portfolio financial flexibility • Brand transition • Global commercial channel • Operational efficiency • Growth opportunities • High-volume manufacturing • Net leverage/debt reduction 7
Slide 8: Q4 Fiscal Year 2024 vs. Q4 Fiscal Year 2023 adjusted revenue
Q4 Fiscal Year 2024 vs. Q4 Fiscal Year 2023 adjusted revenue Dollars in Millions Three Months Ended September 30, % Increase / Decrease Adjusted Constant Reported Currency Revenue Currency Adjustment Revenue 2024 2023 Growth Impact Impact Growth Reported Adjusted Reported Adjusted Adjustment Adjustm
Slide 9: Fiscal Year 2024 vs. Fiscal Year 2023 adjusted revenue
Fiscal Year 2024 vs. Fiscal Year 2023 adjusted revenue Dollars in Millions Twelve Months Ended September 30, % Increase / Decrease Adjusted Constant Reported Currency Revenue Currency Adjustment Revenue 2024 2023 Growth Impact Impact Growth Reported Adjusted Reported Adjusted Adjustment Adjustment %
Slide 10: Q4 FY24 financial highlights
Q4 FY24 financial highlights Q4 FY24 reported revenue of $286.1 million, up 1.5%; as compared to the prior year period Revenue Q4 FY24 adjusted revenue of $290.2 million, up 4.1% on an adjusted constant currency basis, as compared to the prior year period Gross Q4 FY24 GAAP gross profit and margin o
Slide 11: FY24 financial highlights
FY24 financial highlights FY24 reported revenue of $1,123.1 million, up 0.2%; as compared to the prior year period Revenue FY24 adjusted revenue of $1,127.2 million, up 1.1% on an adjusted constant currency basis, as compared to the prior year period Gross FY24 GAAP gross profit and margin of $735.2
Slide 12: Fiscal Year 2025 financial guidance
Fiscal Year 2025 financial guidance Dollars in Millions, Current except per share and percentages Low High Reported Revenue $1,093 $1,110 Reported Revenue Growth (%) (2.7)% (1.2)% Impact of F/X (%) (0.6)% Impact of Italian payback measure (1) (%) 0.4% Adjusted Constant Currency Revenue Growth (%) (2
Slide 13: Q&A
Q&A embecta’
Slide 14: Appendix
Appendix embecta’
Slide 15: Non-GAAP financial measures
Non-GAAP financial measures In evaluating our operating performance, we supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial measures including (i) Adjusted Revenue, (ii) earnings before interest, taxes, depreciation, and amortization (“EBITDA”)
Slide 16: Adjusted revenue and adjusted gross profit margin reconciliation
Adjusted revenue and adjusted gross profit margin reconciliation Dollars in Millions Three Months Ended Twelve Months Ended September 30, September 30, September 30, September 30, 2024 2023 2024 2023 Reported Revenue $286.1 $281.9 $1,123.1 $1,120.8 Italian payback measure (1) 4.1 — 4.1 — Adjusted Re
Slide 17: Adjusted revenue and adjusted gross profit margin reconciliation - continued
Adjusted revenue and adjusted gross profit margin reconciliation - continued (1) Reflects the recognition of incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015 recorded in Revenues. (2) Rep
Slide 18: Adjusted operating income margin reconciliation
Adjusted operating income margin reconciliation Dollars in Millions, except percentages Three Months Ended Twelve Months Ended September 30, September 30, September 30, September 30, 2024 2023 2024 2023 GAAP Operating Income $26.2 $25.8 $166.8 $221.5 GAAP Operating Income Margin 9.2% 9.2% 14.9% 19.8
Slide 19: Adjusted operating income margin reconciliation – continued
Adjusted operating income margin reconciliation – continued (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred primarily include: (i) product registration and labeling costs; (ii) manufacturing, warehousing, and distribution set-up costs;
Slide 20: Adjusted net income and adjusted net income per diluted share reconciliation
Adjusted net income and adjusted net income per diluted share reconciliation Dollars in Millions, except per share amounts Three Months Ended Twelve Months Ended September 30, September 30, September 30, September 30, 2024 2023 2024 2023 GAAP Net Income (Loss) $14.6 $6.0 $78.3 $70.4 Adjustments: GAA
Slide 21: Adjusted net income per diluted share reconciliation – continued
Adjusted net income per diluted share reconciliation – continued (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred primarily include: (i) product registration and labeling costs; (ii) manufacturing, warehousing, and distribution set-up c
Slide 22: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Dollars in Millions, except percentages Three Months Ended Twelve Months Ended September 30, September 30, September 30, September 30, 2024 2023 2024 2023 GAAP Net Income $14.6 $6.0 $78.3 $70.4 Interest expense, net 29.0 27.6 112.3 107.0 Income taxes loss (benefit) (21
Slide 23: Adjusted EBITDA reconciliation – continued
Adjusted EBITDA reconciliation – continued (1) Represents stock-based compensation expense incurred during the three and twelve months ended September 30, 2024 and 2023, respectively. For the three months ended September 30, 2024, $5.3 million is recorded in Selling and administrative expense, $0.4
Slide 24: Adjusted Revenue CAGR reconciliation
Adjusted Revenue CAGR reconciliation Dollars in Millions September 30, 2022 September 30, 2024 CAGR Growth Rate Reported Revenue $1,129.5 $1,123.1 (0.3)% Adjustment Impact (1) $4.1 F/X Impact $32.6 Adjusted Revenue $1,129.5 $1,159.8 1.3% (2) (1) Reflects the recognition of incremental Italian paybac
Slide 25: Fiscal Year 2025 financial guidance assumptions
Fiscal Year 2025 financial guidance assumptions Dollars in Millions, except percentages Current Interest Expense, Net ~ $107 Adjusted Tax Rate ~ 25% Weighted Average Shares (in millions) 58.9 Foreign Exchange EUR/USD ~ 1.08 USD/YEN ~ 151 USD/CNY ~ 7.12 25